What Is a Surviving Spouse's Obligation to Pay the Deceased Spouse's Bills?

A deceased spouse's debt doesn't necessarily disappear. Whether a surviving spouse has to pay debts of the deceased depends on how assets were held. Because there are a variety of ways to own property and hold debt, it's in the best interest of survivors to find debt documents to see the names listed.

Joint Titled

Debt that a surviving spouse holds jointly with the deceased must be paid. Because the spouse is a co-holder of the debt, both owners are jointly responsible for the entire debt. If the debt is secured with property, such as a home or auto, the asset may have to be sold to pay off the debt. Often, a surviving spouse is not responsible for credit cards opened by the deceased without a signature from the survivor. In some community-property states a survivor may still be liable if the debt was incurred during the years of marriage.

Individual

Debt in the name of the individual only and not secured with property does not need to be repaid. Although collection agencies may threaten action against a surviving spouse, the spouse does not have to pay this debt. The Equal Credit Opportunity Act of 1974 states that all consumers have an equal opportunity to obtain credit, based on many factors, including marital status. Strangely, credit cards are an exception and in most states must be paid by the surviving spouse, even if there aren't enough assets to cover the bill.

In Trust

Debts cannot be listed in the name of a trust, but debt may be secured by trust assets, such as cash, a home or an auto. If a surviving spouse is contingent trustee of property that was used as collateral, assets may still need to be surrendered to the creditor to pay the debt. If not paid, the creditor may have a legitimate claim against the estate for the amount owed, unless the trust was created with specific provisions to deter creditors.

Beneficiary

Although no person is the beneficiary of debt, a spouse may be listed as a beneficiary on accounts earmarked to pay a debt. If the asset listed has been used to secure the debt, the creditor has the right to use the asset, with the beneficiary receiving any leftover funds. In some cases, assets must be sold to repay a spouse's debt. In this case the surviving spouse may choose to find other ways to settle the debt rather than selling property, such as using cash in the estate.